Question

What effect will firms entering have on the market​ price? When firms enter ​, A. the marginal cost of production will decrease ​, decreasing price. B. market supply will increase ​, decreasing price. C. market demand will decrease ​, decreasing price. D. the average total cost of production will decrease ​, decreasing price. E. market supply will decrease ​, decreasing price.

Answer 1

Answer:

b

Explanation:

when firms enter into an industry, there are more firms competing for customers. This would shift the demand curve to the right as supply increases. An increase in supply would lead to a reduction in price.

If firms leave the industry, there would be a reduction in supply and price would increase